This publication contains estimates obtained from a sample survey of employers conducted in May 2002. Preliminary estimates were published in Employee Earnings and Hours, Australia, Preliminary, May 2002 (cat. no.6305.0), which was released on 10 December 2002.

The survey is designed to provide statistics on the composition and distribution of earnings and hours of wage and salary earners, and how their pay is set.

NOTES ON ESTIMATES

Care should be taken when comparing estimates of average weekly earnings in this publication with those published quarterly in Average Weekly Earnings, Australia, (cat. no.6302.0) because of methodological differences between the two surveys and differences in the two samples used. For more information on these differences see paragraph 16 of the Explanatory Notes.

The estimates in this publication may differ from the preliminary data in Employee Earnings and Hours, Australia, Preliminary, May 2002 (cat. no.6305.0).

ABS DATA AVAILABLE ON REQUEST

In addition to the information contained in this publication, a range of unpublished data is available on request. For more information on unpublished data refer to the section on ABS data available on request below.

SAMPLING ERRORS

For information on sampling errors see the Technical Notes below.

ABBREVIATIONS

ABS

Australian Bureau of Statistics

ANZSIC

Australian and New Zealand Standard Industrial Classification

ASCO

Australian Standard Classification of Occupations

EEH

Survey of Employee Earnings and Hours

For further information about these and related statistics, contact Brad Pottinger on 08 9360 5305 or the National Information Service on 1300 135 070.

SUMMARY OF FINDINGS

OVERVIEW

The biennial Survey of Employee Earnings and Hours (EEH) is designed to provide statistics on the composition and distribution of earnings and hours of employees, as well as information on how employees' pay is set - by award only, collective agreement or individual agreement. Detailed information on concepts, methods and data items used for this survey can be found in the Explanatory Notes and Glossary.

COMPOSITION AND DISTRIBUTION OF EARNINGS AND HOURS

All employees (tables 1-6)

Weekly total earnings comprise base pay, payment by measured result and overtime payments. In May 2002, average weekly total earnings was $697.60 for all employees, $834.10 for all male employees and $554.00 for all female employees. Average weekly total earnings was $894.20 for full-time adult employees, $382.30 for full-time non-managerial junior employees and $335.80 for all part-time employees.

Overtime payments accounted for 3.9% of average weekly total earnings of all employees and 5.3% of average weekly total earnings for full-time adult non-managerial employees.

Average weekly total earnings of employees in the public sector was higher than for the private sector, in all managerial and non-managerial employee categories except non-managerial juniors.

Average weekly total earnings was highest in the Mining industry ($1,458.40) and lowest in the Accommodation, cafes and restaurants and Retail trade industries, ($422.40 and $433.40 respectively).

Median weekly earnings for all male employees was $750.00 compared with $524.00 for all female employees. While the average weekly total earnings for all employees was $697.60, the median weekly total earnings for all employees was $635.00.

Full-time adult non-managerial employees (tables 8-16)

Sector: For full-time adult non-managerial employees the ratio of female to male average weekly total earnings was 81.6% in the private sector, compared with 88.5% in the public sector. For full-time adult non-managerial male employees the average weekly hours paid for in the private sector was 41.0 hours compared with 38.3 hours in the public sector. For full-time adult non-managerial female employees, average weekly total hours paid for was 38.5 hours in the private sector compared with 37.0 hours in the public sector.

Industry: For full-time adult non-managerial males, the highest total earnings was in Mining ($1,463.00), and the lowest in Accommodation, cafes and restaurants ($654.30). For females, the highest was also in Mining ($1082.70), while the lowest was in Retail Trade ($617.50). Average weekly total hours paid for was highest in the Mining, Transport and storage and Manufacturing industries (45.8 hours, 42.0 hours and 41.4 hours respectively).

Occupation: Full-time adult non-managerial male and female Medical practitioners had the highest average weekly total earnings among occupation minor groups ($1,637.80 and $1,476.00 respectively). The lowest average weekly total earnings for full-time adult non-managerial males was $527.80 for Elementary food preparation and related workers. The lowest average weekly total earnings for full-time adult non-managerial females was $518.10 for Agricultural and horticultural labourers.

The ratio of female to male average weekly ordinary time earnings for full-time adult non-managerial employees was highest for Managers and administrators (92.6%) and lowest for Intermediate production and transport workers (77.4%).

State/territory: The highest total earnings for full-time adult non-managerial employees were in the Australian Capital Territory ($879.90) and New South Wales ($872.60). The lowest earnings were in Tasmania ($789.60) and Queensland ($809.00). Median weekly earnings were highest in the Australian Capital Territory ($826.00) and lowest in Tasmania ($711.00).

Distribution: Half of all full-time adult non-managerial employees recorded weekly total earnings of between $615.00 and $1,001.00; one-tenth received $519.00 or less and one-tenth received more than $1,250.00.

Overtime: For full-time adult non-managerial employees who were paid overtime, the average weekly overtime earnings for males was significantly higher than for females ($224.40 compared with $128.10). The average was $230.30 in the private sector compared with $197.20 in the public sector. In contrast, female full-time adult non-managerial employees overtime earnings was higher in the public sector compared with the private sector ($178.00 compared with $115.00).

The proportion of full-time adult non-managerial employees paid overtime was highest in the Construction and the Transport and storage industries (both 38.4%) followed by the Manufacturing and Mining industries (36.3% and 35.5% respectively). The proportion was lowest in the Education industry (3.0%).

METHODS OF SETTING PAY

Information on the methods of setting pay for employees refers to how the main part of an employee's pay was set in the survey reference period. Employees classified to 'awards only' had the main part of their pay set by an award, and were not paid more than the award rate of pay. Employees classified to the collective agreement category comprise those who had the main part of their pay set by a registered or unregistered collective agreement.

Those in the individual agreement category include employees who had the main part of their pay set by an individual common law contract, employees who received over-award payments by individual agreement, working proprietors who set their own rate of pay, and employees on registered individual agreements. See Glossary for more information.

All employees (tables 21-28)

The most common methods of setting pay for all employees were unregistered individual agreements (39.3%), registered collective agreements (36.1%) and awards only (20.5%). Unregistered collective agreements (2.2%) and registered individual agreements (2.0%) were the least common pay setting methods.

In the private sector, the most common method of setting pay was unregistered individual agreements (48.5%), while in the public sector it was registered collective agreements (88.5%).

The most common methods of setting pay for full-time employees were individual agreements (47.9%) and collective agreements (39.1%). For part-time employees, collective agreements (36.5%) and awards only (35.4%) were the most common methods of setting pay.

By industry, the 'awards only' method of setting pay for employees was highest in the Accommodation, cafes and restaurants industry (61.2%). The collective agreements method of setting pay for employees was highest in the Government administration and defence industry (86.6%). Individual agreements were highest in the Wholesale trade industry (80.4%).

South Australia had the highest proportion of employees whose pay was set by awards only (25.1%). The Australian Capital Territory and Tasmania had the equal highest proportion of employees who had the main part of their pay set by collective agreements (49.3%). Western Australia had the highest proportion of employees who had the main part of their pay set by individual agreements (48.8%).

New South Wales had the lowest proportion of employees covered by collective agreements (35.3%).

Jurisdiction (table 28)

The jurisdiction of a registered collective or individual agreement is based on the federal or state industrial tribunal or authority which has certified, approved or registered the agreement. Thus, an employee may be covered by either a federal or state registered agreement (individual or collective) depending on the circumstances that prevail at the workplace. See Glossary for more information.

On an Australia wide basis, more employees had the main part of their pay set by federal registered agreements (24.2%) than state registered agreements (13.9%). The Australian Capital Territory (51.6%), Northern Territory (42.1%) and Victoria (37.5%) had the highest proportion of employees who had the main part of their pay set by federal registered agreements, while New South Wales (16.5%) and Queensland (17.7%) had the lowest. Western Australia and Queensland had the highest proportion of employees who had the main part of their pay set by state registered agreements (24.5% and 22.2% respectively), while Tasmania had the lowest (15.0%).

Non-managerial employees (table 29)

Average weekly total earnings of non-managerial employees who had the main part of their pay set by awards only was highest in the Northern Territory ($476.10) and Western Australia ($436.60), and lowest in the Australian Capital Territory ($375.10) and Tasmania ($384.50). For non-managerial employees who had the main part of their pay set by registered collective agreements, the average weekly total earnings was highest in the Australian Capital Territory ($789.70) and New South Wales ($769.60) and lowest in Tasmania ($683.50) and Western Australia ($693.00). Average weekly total earnings of non-managerial employees who had the main part of their pay set by unregistered individual agreements was highest in Victoria ($827.60) and New South Wales ($779.70) and lowest in Tasmania ($431.30) and the Northern Territory ($591.50).

Full-time adult non-managerial employees (table 30)

Average weekly total earnings for full-time adult non-managerial employees who had the main part of their pay set by awards only was $639.90. This compares with $914.30 for employees who had the main part of their pay set by collective agreements and $836.10 for employees whose pay was set by individual agreements. The median weekly total earnings for full-time adult non-managerial employees whose pay was set by awards only was $589.00 compared with $861.00 for employees whose pay was set by collective agreements and $749.00 for employees whose pay was set by individual agreements.

Half of all full-time adult non-managerial employees who had the main part of their pay set by awards only recorded average weekly total earnings between $493.00 and $721.00. This compares with average weekly total earnings between $688.00 and $1,073.00 for 50% of all full-time adult non-managerial employees who had the main part of their pay set by collective agreements and average weekly total earnings of between $614.00 and $961.00 for 50% of all full-time adult non-managerial employees who had the main part of their pay set by individual agreements.